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The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance
The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Demand Next Selling Price Product year (units) per Unit Debbie Trish 60,000 52,000 $ 19.50 Direct Materials $ 5.30 Direct Labor $ 2.80 $ 6.00 $ 2.10 $ 1.20 Sarah 45,000 $ 33.00 $ 7.94 $ 5.20 Mike Sewing kit 52,000 335,000 $ 13.00 $ 9.00 $ 3.00 $4.20 $ 3.60 $ 0.80 The following additional Information is available: a. The company's plant has a capacity of 103,250 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products.
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